The financial planning is critical and so the health insurance for the American families. The health insurance aims to cover the medical expenses incurred to an individual. The health insurance is a necessity due to multiple diseases and hospitalization expenses are on rising. However, it is not easy to afford health insurance in the USA due to the rise in the insurance premium of about 90 per cent in the last few years. Here’s a deep analysis is conducted to understand the average cost of health insurance for a family of 4 in the USA.
About the Affordable Care Act
The policy related to healthcare has been a debatable topic for the politician from ‘Barak Obama’ to Donald Trump. Although, the Affordable Care Act aims for better healthcare and lower healthcare premium still it remains unaffected on papers. The NCSL confirmed that the average cost of health insurance for a family of 4 reached $18,764/annually considerably up about 3 per cent since 2015. The additional out-of-pocket cost is $5,714 in 2017 while Milliman Medical Index confirmed it is nearly $ 28,000 in 2018. As a result, the average cost of health insurance for a family of 4 is rising excluding the government-funded subsidies and employer-sponsored benefits facilities.
It is to be noticed that the health insurance premium cost affected due to several factors including coverage, age and USA state. Similarly, The eHealth collected data in 2017 showed that for individual costs $393 under the Affordable Care Act which is $197 in 2013.
Metal Level Under the ACC Act
Under the Affordable Care Act, the average cost of health insurance for an individual divided on the basis of Metal level. Additionally, It depends on the particular needs of health care and financial ability.
Catastrophic Coverage -:
|Average Monthly Premium||$167|
|Average Monthly Premium||$201|
|Average Monthly Premium||$247|
|Average Monthly Premium||$291|
|Average Monthly Premium||$363|
Above stated prices are listed for the individual of age 21 without the government subsidy. However, age plays a crucial role in determining the health insurance premium monthly. The average cost for an individual range from $152 for 18 years old or under to $580 per month for the person with age 55 to 64 years.
|Age Bracket||Average Cost for an individual(Monthly)|
|18 and under||$152|
|18 to 24||$177|
|25 to 34||$239|
|35 to 44||$303|
|45 to 54||$400|
|55 to 64||$580|
Hence, it can be concluded that the health insurance plan also affected by the gender which $461 for a woman in 2018 while $418 for men. In this way, the average monthly plan for a family of 4 is the minimum go to $1,168 monthly. Whereas, It can be reached to $2,300 monthly in case of a family with average age falls in bracket 35-44 years old i.e.$ 27,600 respectively. Although, the average annual deductible for an individual plan is $4,478 while for a family plan is $ 8,803 under the ACA Act. Therefore, the health insurance premium cost is on rising and it’s affecting the financial planning of the American people.
With shared the above information with using multiple genuine sources, if you think there can be an addition in this article. Kindly share your views in the comment section and even share your current health plan cost? We love to hear it.